An insurance settlement offer includes annual payments of $36,000, $42,000, and $50,000 over the next three years, respectively, with the first payment being made one year from today. What is the minimum amount you should accept today as a lump sum settlement if your discount rate is 7 percent?

Multiple Choice

• $119,877.67

• $111,144.18

• $105,000.10

• $118,924.27

• $114,556.88